Contractor Travel Policy

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I. POLICY OVERVIEW 1.01 STATEMENT OF GENERAL POLICY Customer suppliers are responsible for ensuring that all travel and living expenses (collectively, ―Travel Expenses‖) charged to Customer are reasonable and necessary. Additionally, such Travel Expenses are only reimbursable by Customer where Customer has contractually agreed to reimburse such Travel Expenses and where the Supplier (and Supplier’s Contractor) has followed the policy described herein. The Contractor Travel Policy has been developed to:  Identify reimbursable vs. non-reimbursable Travel Expenses;  Clarify Contractor’s responsibilities for reporting Travel Expenses; and  Make Contractors aware of IRS regulations on documentation and substantiation of business travel expenditures. Customer expects each Contractor to exercise sound judgment when incurring Travel Expenses. In no case will Customer pay an hourly rate or other fee for travel time of Contractor. 1.02 APPROVAL BY CUSTOMER The Customer Project Manager approving the Travel Expenses shall determine: (1) if the trip is necessary; (2) if the business reason for the trip is justified; (3) if the business purpose could be accomplished by telephone, fax, or other means, thereby eliminating the travel expense; and, (4) if the estimated cost justifies the trip. Based on this review, Customer will reimburse all, a portion, or none of the submitted Travel Expenses. Any deviation from this policy will require written documentation and approval from Customer’s Project Manager. 1.03 CAR RENTAL Decisions to use rental cars should be based on economy for Customer and not personal convenience. Contractors should use local transportation such as airport limousine services, taxis, hotel shuttles, and other public transportation modes whenever possible. All rental cars will be reimbursed at the economysize, compact, or sub-compact rate.


When services provided by a Supplier require more than one Contractor, Contractors must share transportation to minimize costs. Contractors may use a full-size car only when three or more Contractors are traveling together. When renting a car, Contractors must decline the insurance offered by the rental car company. Suppliers are required to have an insurance policy that provides coverage when Contractors rent cars on company business. Contractors must return rental cars with the same amount of fuel (meaning, ―full‖) they had when first rented to avoid additional fuel charges. Rental agencies may charge exorbitant fees for refueling the rental vehicle. Fuel costs should be indicated on the Contractors’ Travel Expenses request for reimbursement— receipts are required. Customer will not pay for mileage when reimbursement is submitted for a rental car. 1.04 PERSONAL CAR USE Contractors who use personal cars for services provided to Customer will be reimbursed at the current IRS allowable rate for mileage. Reimbursement will not exceed the amount Customer would have paid if the Contractor traveled by coach or economy class on a commercial air carrier, regardless of which class of service is authorized. 1.05 LODGING Customer will reimburse only actual lodging room costs supported by the original bill for each day that lodging is required for services provided to Customer. Lodging should be reasonable in price and located in relation to the Contractor’s work assignment. The Contractor must have a valid receipt that shows the form of payment. No express checkout receipts will be accepted, and the hotel folio must show a zero balance. Contractors must attach the original hotel folio to the Travel Expenses reported and itemize charges other than the actual room cost. 1.06 BUSINESS MEALS Customer will reimburse Contractors for meal expenses (breakfast, lunch, and dinner) actually incurred when traveling to provide services for Customer. Expenses must be reasonable, appropriate, and supported by a receipt.


Some establishments provide a “tear tab” as a documented receipt. These are not considered valid receipts, and Customer will not accept them as proof or documentation. Business meals, provided by Supplier for Customer clients or outside business associates while providing services to Customer, will not be reimbursed by Customer. 1.07 EXCESSIVE TRAVEL While Customer appreciates the personal needs of Contractors, Contractors are expected to endure extended periods away from their originating locale when providing services to Customer. Where a Contractor travels excessively, Customer will not reimburse Supplier for such travel beyond what Customer deems reasonable and necessary. For example, if a Contractor providing services to Customer for a month’s period travels every weekend between Customer and Contractor’s originating locale in a distant area, Customer will consider such travel excessive and will likely only reimburse Supplier for one period of travel. 1.08 EXPENSE REPORTING The following requirements for proving the business nature and amounts spent must be met: Burden of proof – Contractor must be able to prove their deductions for Travel Expenses by adequate records or sufficient evidence that will support the associated request for reimbursement. Estimates or approximations do not qualify as proof of Travel Expenses. TRAVEL Contractor must be able to prove:  Each separate amount Contractor spends while providing services for Customer, such as the cost of Contractor’s transportation or lodging. Contractor may total the daily costs of Contractor’s breakfast, lunch, and dinner and other incidental elements of such travel if they are listed in reasonable categories such as taxi fares, etc. All Travel Expenses require a receipt.  The dates Contractor left and returned home for each trip; and,  The destination or area of Contractor’s travel, described by the name of the city, town, state, or similar designation.


MEALS Contractor must be able to prove:  The amount of each separate meal expense;  The date the meal took place; and,  The name, address, or location, and the type of meal (dinner, lunch, etc.), if the information is not apparent from the name of the establishment. Adequate evidence – Documentary evidence ordinarily will be considered adequate if it shows the amount, date, place, and essential character of the expense. For example, a hotel receipt is enough to support expenses for business travel if it has the name and location of the hotel, the dates Contractor stayed, and separate amounts for charges such as lodging, and meals. A restaurant receipt is enough to prove an expense for a business meal if it has the name and location of the restaurant, and the date and amount of the expense. If a charge is made for items other than meals and beverages, the receipt must show that this is the case. When personal checks are submitted as proof of payment for reimbursement, a copy of the front and back of the canceled check must accompany the expense report. Extravagant Travel Expenses -- Customer will not reimburse extravagant or unusually large expenses for meals or other items related to business travel. 2.08 NON-ALLOWABLE TRAVEL EXPENSES Where provided for under the agreement between Customer and the Supplier, Customer's policy is to reimburse Supplier for all reasonable and necessary Travel Expenses incurred when providing services. The following describes situations or Travel Expenses that are non-allowable and that will not be reimbursed by Customer.  Travel Expenses that exceed the agreed-upon travel and expense cap, if any, contained in the agreement between Customer and Supplier;  Late fees and penalties assessed against the Suppliers’/Contractors’ credit card;  Travel Expenses included that do not have a receipt;  Tear-tab receipts presented for reimbursement;


 Internally generated taxi cab receipts;  Air travel and other personal insurance;  Personal grooming services such as beauty/barber services, massages, and manicures;  Briefcases, suitcases, fountain pens, or other items for personal use;  Entertainment expenses (e.g., airline headsets, movies);  Lost or stolen property;  Doctor bills, prescriptions, and other medical services;  Tours, golf, tennis, horseback riding, skiing, theater, or other personal amusements;  Traffic fines and court costs;  Airline club memberships;  Bottles of alcoholic beverages;  Sporting equipment rentals;  Extra meals, when meals are being provided at meetings; and,  Tobacco products. NOTE: The items listed above are only guidelines and do not necessarily include all Travel Expenses not allowed.


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